United, Continental to merge; no immediate impact in Albany

The airlines this morning confirmed they will merge, forming the world’s largest carrier. For now, the move likely won’t have

Merging the United and Continental ticket counters won't involve much moving at Albany International Airport. They're next to one another.

any immediate impact on service at Albany International Airport. United and United Express serve Chicago O’Hare and Washington Dulles from Albany, while Continental’s regional affiliates provide service to Newark and Cleveland Hopkins.

The two carriers will continue to operate as independent airlines until the deal closes sometime in the fourth quarter of this year.

The airlines will retain United’s name and Continental’s paint job, as well as 10 domestic hubs. A United press release said those hubs include the nation’s four largest metro areas: New York, Los Angeles, Chicago and Houston. Houston, where Continental was based, would be the largest in terms of service,United said, while Chicago, where United is headquartered, would serve that role for the combined carriers.

At Albany, the combined carrier, with a 20.4 percent market share, will carry about one in every five passengers. That’s still well behind market leader Southwest, which carries nearly four in every 10 Albany passengers.

Continental employees at Albany are actually employed by Continental Express, the airline’s regional unit. The 10 full-time and 25 part-time United employees here all work for the mainline carrier, airport spokesman Doug Myers said.

The number of Continental Express employees wasn’t immediately available.

It’s not clear what will happen to some of the passenger frills. United has provided extra leg room at the front of its coach cabin for elite level frequent fliers and for other travelers who pay a fee. Continental, until recently, offered free meals on many of its domestic flights.

Continental’s OnePass program will be folded into United’s Mileage Plus once the deal has closed. The two carriers have 69 airport clubs between them. There was no word on consolidation.

Myers said both carriers had provided good service to Albany travelers, and that the airport authority supported the merger move.

It’s not the first merger they’ve seen. Northwest and Delta recently completed their own merger, and Delta continues to serve the former Northwest hub at Detroit from Albany, as well as its own hubs at Atlanta and Cincinnati. It also has at least one daily flight to Northwest’s other hub in Minneapolis.

The deal apparently provides an exit from the management ranks for United CEO Glenn Tilton, who will serve as non-executive chairman until Dec. 31, 2012, or the second anniversary of the closing of the deal, whichever is later. Jeff Smisek, Continental’s chairman, CEO and president, will be the CEO of the combined carrier, and will succeed Tilton as executive chairman when he departs.

The closing is expected to take place in this year’s fourth quarter. The deal still needs shareholder and regulatory approvals.

United and Continental are both members of the Star Alliance, sharing flight numbers and allowing frequent flier program members to earn miles on each other’s flights. US Airways, with which United briefly held merger talks earlier this year, and Air Canada, which both serve Albany, also are members of the alliance.